Waldencast Plc · NASDAQ:WALD
Waldencast — Q2 2024 Earnings Presentation
63 slides from Waldencast's earnings presentation, Aug 28, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation 1
Slide 2: Michel Brousset and Manuel Manfredi
MICHEL BROUSSET MANUEL MANFREDI CO-FOUNDER & CEO CHIEF FINANCIAL OFFICER 2
Slide 3: Disclaimer: Cautionary Statement Regarding Forward-Looking Statements
DISCLAIMER Cautionary Statement Regarding Forward-Looking Statements All statements in this presentation that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not l
Slide 4: Ambition: global multi-brand beauty and wellness platform
Our ambition is to build a global best-in-class beauty and wellness multi-brand platform by creating, acquiring, accelerating, and scaling the next generation of high- growth, purpose-driven brands 4
Slide 5: Prestige beauty market growth H1 2024
8% PRESTIGE BEAUTY H1 2024 Circana, U.S. Prestige Beauty Total Measured Market, dollar adjusted sales, January-June 2024 versus 2023. 7% PRESTIGE SKINCARE H1 2024 H1 2024 5% PRESTIGE MAKEUP 5
Slide 6: Leading brands outperforming the market
1 Circana, U.S. Prestige Beauty Total Measured Market, dollar adjusted sales, January-June 2024 versus 2023. Based on North America U.S. GAAP Net Revenue for each brand. 2 Independent Industry Sources, USA (2023) *Q – Which professional skin care brand are you most likely to recommend to your patien
Slide 7: Where we are, where we are headed
WHERE WE ARE WHERE WE ARE HEADED Skin Color Hair Body Wellness Fragrance US APAC Europe LATAM Professional Specialty Online Food / Drug / Mass Prestige Masstige Mass Categories Geographies Channels Price Points 7
Slide 8: Combined financial profile: Q2 2024
COMBINED FINANCIAL PROFILE: Q2 2024 1 Based on Comparable Growth, refer to page 3 for definitions of non-GAAP financial measures. U.S. GAAP Net Revenue growth of 28.2% during the same period. 2 Gross Profit of $44.6M adjusted for reconciling items, refer to the Appendix page 56. 3 Refer to page 3 fo
Slide 9: Combined financial profile: H1 2024
COMBINED FINANCIAL PROFILE: H1 2024 NET REVENUE $131.6M +23.1% ADJ. GROSS PROFIT $99.5M 75.6% ADJ. EBITDA $17.7M 13.4% 9 1 Based on Comparable Growth, refer to page 3 for definitions of non-GAAP financial measures. U.S. GAAP Net Revenue growth of 20.3% during the same period. 2 Gross Profit of $94.2
Slide 10: FY 2024 Outlook
FY 2024 OUTLOOK COMPARABLE NET REVENUE Growth Above Q2 10 ADJ. EBITDA Mid-Teens Margin H2 Value and Margin Above H1 Refer to page 3 for definitions of non-GAAP financial measures.
Slide 11: Liquidity and shares outstanding
$19.7M As of June 30, 2024 As of August 15, 2024 Net Debt1 Ordinary Shares Outstanding Class A Ordinary Shares Outstanding2 Class B Ordinary Shares Outstanding$155.0M 122.7M 110.6M 12.1M Cash & Cash Equivalents LIQUIDITY & SHARES OUTSTANDING 11 1 Net Debt Position is defined as the principal outstan
Slide 12: Milk Makeup
Mall MAKEUP
Slide 13: Our results: Q2 2024
OUR RESULTS: 22024 NET REVENUE ADJ. GROSS PROFIT" ADJ. EBITDA’ $28.7M $20.0M $5.7M +20.0% 69.7% 19.8%"
Slide 14: Our results: H1 2024
OUR RESULTS: H12024 NET REVENUE ADJ. GROSS PROFIT’ ADJ. EBITDA’ $63.2M $44.6M $15.7M +20.8% 70.6%" 24.9%"
Slide 15: North America and International growth
NORTH AMERICA +15.5% H1 2024 INTERNATIONAL +33.3% H1 2024
Slide 16: Our vision
OUR VISION: BE “THE NEXT” THE #1 CHOICE OF THE NEXT GEN
Slide 17: Our mission
OUR MISSION CREATE ASPACEIN BEAUTY FORALL. ALWAYS FEARLESS IN INNOVATION AGILITY AND SELF-EXPRESSION.
Slide 18: Our path
OURPATH FAMOUSLY UNIQUE. HIGHLY RELEVANT PRODUCT COMMUNITY FAMOUSLY UNIQUE. TANGIBLY BETTER. we = HIGHLY ENGAGED. GLOBAL. UNIQUE. ETERNAL. IMPORTANT. FUEL ~~ DISTRIBUTION PROFITABLE GROWTH. BRAND-BUILDING. COMMUNITY CONNECTING. CULTURE CREATIVE. INSIDE OUT. WIN AS ONE.
Slide 19: Our north star
OUR NORTH STAR OUR COMMUNITY FUELING THEIR CREATIVITY & SELF-EXPRESSION. HELPING THEM TO LIVE THEIR LOOK.
Slide 20: H1 2024 community performance
H12024 COMMUNITY PERFORMANCE #12 EMV RANK $ EMV (Millions) $30 $25 $20 $18 $10 $5 $0 #19 EMV RANK JAN 2023 #15 EMV RANK DEC 2023 JUN 2024
Slide 21: H1 2024 organic social results
H12024 ORGANIC SOCIAL RESULTS 538K+ New Followers +254% 89M+ Video Views +95% 6.23M+ TTL Engagements +286% 1100+ Pieces of Content Oocse® erapement ata as of 12024, om « ww 1M TikTok Followers 6 Product Launches
Slide 22: H1 2024 press coverage and highlights
H12024 PRESS COVERAGE + HIGHLIGHTS 5.4B TOTAL IMPRESSIONS 1.4B NPD IMPRESSIONS +60% enapement Data ae of 2024, Press Coverage Imoestons, “CUT ELLE mariedaite cu divr Are Buying From Sephora’s lime te Milk Makeup's Annual S Te 15 Best Milk Make Viral Cooling lie 15 Be (Milk Makeup 7 Water Jelly Tint
Slide 23: Our product promise
OUR PRODUCT PROMISE CLEAN CooL BEAUTY THAT WORKS BREAKTHROUGH INNOVATION THAT DELIVERS. UTILITARIAN. GOOD FOR YOU. ALWAYS VEGAN, CLEAN & CRUELTY-FREE. 23
Slide 24: Build our icons
BUILD OURICONS PRIME + SET STICKS M igi Ml @y
Slide 25: Building new high replenishment segments
BUILDING NEW HIGH REPLENISHMENT SEGMENTS LIP COMPLEXION
Slide 26: Cooling Water Jelly Tint
COOLING WATER JELLY TINT 2 1 SOLD EVERY ie 30 lta SECONDS' £ 8 Se As AWARDS YTD? arp hip 1B | IMPRESSIONS’
Slide 27: Global beauty awards
GLOBAL BEAUTY AWARDS CS Cs 17 AWARD WINS 31 AWARD WINS 22 AWARD WINS KTAR ANE] : &) Soe &) i, » ~ J et is ifs iz © (2 pe & a : Tae |
Slide 28: Strong international performance in new geographies
STRONG INTERNATIONAL PERFORMANCE IN NEW GEOGRAPHIES UNITED KINGDOM SCANDINAVIA NET REVENUE TOP 5 +47% BRAND IN THE H1 2024 MARKET EMV GROWTH LYKO ie) +1 98 to MASSIVE SUCCESS FASTER THAN ANY TOP 10 BRAND. WITH NEW CUSTOMER LATIN AMERICA NET REVENUE +183% H1 2024 BLUSH BAR MEXICO #1 BRAND IN TOTAL ST
Slide 29: Obagi Medical
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Slide 30: Key figures Q2 2024
KEY FIGURES Q2 2024 NET REVENUE ADJ. GROSS PROFIT? ADJ. EBITDA* $34.6M $27.4M $6.5M +30.9%' 79.3% 18.6% COMPARABLE GROWTH
Slide 31: Key figures H1 2024
KEY FIGURES H1 2024 NET REVENUE ADJ. GROSS PROFIT? ADJ. EBITDA* $68.4M $54.9M $13.2M +25.4% 80.3%’ 19.3% COMPARABLE GROWTH
Slide 32: North America and International growth
NORTH AMERICA +37.6% H1 2024 INTERNATIONAL* +35.2% H1 2024 Excludes $4.6M of Net Revenue related ta the former Southeast Asia distributor, for that 2
Slide 33: Our global vision
Our Global Vision PHYSICIAN DISPENSED DERMATOLOGICAL BRAND IN THE WORLD
Slide 34: Leading U.S. physician recommended brand
Leading #1 a PIGMENTATION U.S. Physician Recommended #1 Brand FINE LINES & WRINKLES For Top-3 Skin Concerns” SAGGING SKIN & LOSS OF ELASTICITY
Slide 35: Our growth strategy
Our Growth Strategy 1 STRENGTHEN DERMATOLOGICAL SKINCARE BRAND DNA 2 ACCELERATE CUTTING-EDGE SCIENCE BACKED INNOVATION 3 GROW BRAND AWARENESS & FOOTPRINT 35
Slide 36: Science is the answer
SCIENCE IS THE ANSWER There are many skincare questions and issues, but at Obagi, they all have the same answer. Science. Itis the foundation of our brand, Our Clinical research and rigorous testing is why physicians have trusted us for over 35 years and counting, But science is never settled and ne
Slide 37: Delivering transformational results
Delivering “a Ps Transformational Results il a BASELINE WEEK 18
Slide 38: Research & development
39 RESEARCH & DEVELOPMENT Cutting-Edge PARTNERS Science MEDICAL-GRADE INGREDIENTS
Slide 39: Clinical testing program
Leading 329 ow 100 studies conducted products tested 6066 umes LO ecces participants involved performed per innovation Clinical Testing Program
Slide 40: Obagi Medical
MEDICAL 2 aa ge BS) opAGINU-CIL
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Slide 44: Expressing science through typography
Expressing Science through typography. Lascorbic acid HCeH706 176.12g/mol HYDROQUINONE 496 Obagityarate™ Authority Science Innovation Physician Dispensed
Slide 45: Lash improvement
Lash improvement inas little as 8 weeks. RIZE YOUR HYDRATE LUXE" Rag) OBAGI MEDICAL
Slide 46: Obagi Discover #TheObagiEffect
OBAGI® Confidential DISCOVER #THEOBAGIEFFECT 46
Slide 47: Elastiderm Lift Up & Sculpt Facial Moisturizer
ELASTIDERM® LIFT UP & SCULPT FACIAL MOISTURIZER OBAGI MEDICAL Improved skin elasticity by up to 19% in as little as 3 weeks: 100% showed visible improvement in fine lines pe offer 6 works, Eu LIFT UP & SCULPT FACIAL MOISTURIZER FACIAL CONTOUR DEFINING Mojority saw a visible improvement in the defini
Slide 48: Elastiderm Advanced Filler Concentrate
ELASTIDERM® ADVANCED FILLER CONCENTRATE my’ RESULTS INSTANTLY & OVERTIME 1% Improvement compared to baseline UJ — | | 3 [] l mie a miter a Foreheod Lines Skin Smoothness ELASTIDERM® ADVANCED FILLER CONCENTRATE Nor-Inje Instant | 11% Feroneod tines. 19% fineincs. 19%o ferabecd nes. & AFTER A SINGLE A
Slide 49: Raising consumer awareness
Raising Consumer Awareness 165% YoY EMV Growth! #3 Fastest-Growing EMV Beauty Brand? @AYANASPROWL, @SHAIELEXIS @CHARITYLAWSON @UINNYANNN
Slide 50: Brands, Communities, Teams
BRANDS COMMUNITIESTEAMS 50
Slide 51: Appendix
APPENDIX 51
Slide 52: Q2 2024 Highlights
(In millions, except for Q2 2024 HIGHLIGHTS % Comp percentages) Q22024 %Sales %Growth Growth @22023 % Sales Waldencast Net Revenue 63.3 100.0% 28.2% 25.7% 49.4 100.0% Adjusted Gross Profit 47.5 75.0% 40.3% 33.8 68.5% Adjusted EBITDA 63 10.0% 64.5% 3.9 7.8% Obagi Medical Net Revenue 34.6 100.0% 35.9%
Slide 53: H1 2024 Highlights
H1 2024 HIGHLIGHTS (In millions, except for % Comp percentages) H12024 %Sales %Growth Growth H12023 _% Sales Waldencast Net Revenue 131.6 100.0% 20.3% 23.1% 109.3 100.0% Adjusted Gross Profit 99.5 75.6% 36.4% 73.0 66.7% Adjusted EBITDA 177 13.4% 27.2% 13.9 12.7% Obagi Medical Net Revenue 68.4 100.0%
Slide 54: Group comparable net revenue growth
GROUP COMPARABLE NET REVENUE GROWTH 54
Slide 55: Obagi Medical comparable net revenue growth
OBAGI MEDICAL COMPARABLE NET REVENUE GROWTH 55
Slide 56: Group adjusted gross profit
GROUP ADJUSTED GROSS PROFIT 56 1 Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination. 2 Relates to the amortization of the inventory fair value step-up as a result of the Business Combination. 3
Slide 57: Milk Makeup adjusted gross profit
MILK MAKEUP ADJUSTED GROSS PROFIT 57
Slide 58: Obagi Medical adjusted gross profit
OBAGI MEDICAL ADJUSTED GROSS PROFIT 58
Slide 59: Group adjusted EBITDA
GROUP ADJUSTED EBITDA 59 1 Includes mainly legal, advisory and consultant fees related to the financial restatement for FY 2022 and associated regulatory investigation. 2 Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part
Slide 60: Milk Makeup adjusted EBITDA
MILK MAKEUP ADJUSTED EBITDA 60
Slide 61: Obagi Medical adjusted EBITDA
OBAGI MEDICAL ADJUSTED EBITDA 61
Slide 62: Central costs adjusted EBITDA
CENTRAL COSTS ADJUSTED EBITDA 62
Slide 63: Q2 2024 net debt position
Q2 2024 NET DEBT POSITION Reconciliation of Net Carrying Amount of debt (In thousands) to Net Debt Current portion of long-term debt $ 26,237 Long-term debt $ 145,289 Net carrying amount of debt 171,526 Adjustments: Add: Unamortized debt issuance costs 3,162 Less: Cash & cash equivalents (19,691) Ne